A large number of asset managers, broker-dealers and trading and technology groups will be forced into consolidation this year, according to a new report, as financial services firms seeks strength and safety following a year of poor returns, deleveraging and redemptions.

Freeman & Co, an M&A advisory firm, said that the value of assets under management changing hands as a result of mergers increased by almost 20% in 2008, while acquisitions in the trading and technology sector surged by more than a half.